BioMar marked by competition in Norway

August 17 2018

The half year report for BioMar Group has today been released by the parent company Schouw & Co.BioMar Group has increased volumes and revenue compared to 2017. However the overall result is composed by results in the salmon markets declining slightly while other core markets and new business units have been performing according to expectations.

BioMar Group continues to deliver strong financial results. The company has performed a H1 with improved sales and stronger EBITDA compared to H1 2017. The sales volume increased 8% compared to same period last year, mainly driven by the new shrimp business unit in Ecuador, Alimentsa. Innovative products integrating high performance, functional feeds and sustainability concepts have shown to be a very strong platform for growth in the new markets:

"We see a strong performance in Ecuador as well as in our newly established companies in China and Turkey. We are proud that we have been able to integrate the new business units in BioMar Group at the same time enhancing growth, innovation and collaboration with the customers. In line with our strategy, we have managed to contribute with our global approach and knowledge base, maintaining the local agility", explains Carlos Diaz, CEO in BioMar Group.

While the other markets are performing according to expectation, the full-year guidance has been lowered as the severe competition in Norway has impacted the volumes to be produced in the last part of 2018. However, BioMar is confident that the situation will change significantly going forward:

"The competition is merely accelerating our speed of development. We have already taken initiatives to increase our volumes and to achieve sustainable profitability. There is no doubt that we will continue to take lead, collaborating with our customers and the industry in general, driving innovation, sustainability and efficiency. I am confident that we have the means to get our growth in the salmon markets back on track", underlines Carlos Diaz.

BioMar expects to reach revenue of DKK 10.0 billion DKK in 2018. Despite lowering the full year forecast by DKK 0.5 billion, 2018 will be a record year for the company. At the same time the company is preparing for growth constructing factories in Australia and China as well as installing new lines in Denmark and Ecuador. Furthermore a new research center dedicated to shrimp farming is being established in Ecuador:

"We are working in accordance with our growth strategy and we believe that the demand for high-performance feed will continue to increase in Europe as well as in our new markets. Our new lines will support highly advanced product concepts preparing us to set-off for producing the feed solutions embracing the possibilities of tomorrow. Together with our customers, we need to be prepared to be pioneers on what matters", concludes Carlos Diaz.

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